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I need the answer as soon as possible 9146 Q.32. A company has a choice of investments between several different equity oriented mutual funds. The
I need the answer as soon as possible
9146 Q.32. A company has a choice of investments between several different equity oriented mutual funds. The company has an amount of* 1 crore to invest. The details of the mutual funds are as follows: Mutual Fund Beta A 1.0 B 1.0 0.9 D 2.0 E 0.6 Required: (i) If the company invests 20% of its investment in the first two mutual funds and an equal amount in the mutual funds C, D and E, what is the beta of the portfolio? (ii) If the company invests 15% of its investment in C, 15% in A, 10% in E and the balance in equal amount in the other two mutual funds, what is the beta of the portfolio? (iii) If the expected return of market portfolio is 12% at a beta factor of 1.0, what will be the portfolios expected return in both the situations given above? CS Scanned with CamScannerStep by Step Solution
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